Sunstein returning to Harvard

Cass Sunstein, administrator of the powerful Office of Information and Regulatory Affairs in the White House Office of Management and Budget, will return later this month to his previous post at Harvard Law School, the White House will announce Friday.

Sunstein, a celebrity academic who met Barack Obama when they were both teaching at University of Chicago Law School was among the world’s most-quoted law professors when he came to Washington in 2009. He was named the new president’s chief regulatory enforcer (often called the “regulatory czar”) as head of OIRA, “oh-eye-ruh,” an office that gets little attention but is among an administration’s most potent levers.

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Like Obama, Sunstein embraces “behavioral economics” – an emphasis on human behavior, rather than abstract theory, for identifying incentives to promote desired financial and environmental activity by individuals and corporations. The field of study supplied early underpinnings for Obama’s plans for health care and financial regulation.

Sunstein became a lightning rod for liberal activists who had hoped the administration would be more aggressive with regulatory policy. He had met his future wife – Samantha Power, who also works for the White House as the National Security Council’s Senior Director for Multilateral Affairs and Human Rights — while the two were campaigning for Obama in Iowa.

At Harvard, Sunstein will be Felix Frankfurter Professor of Law and Director of the Program on Behavioral Economics and Public Policy.

The president said in a statement: “For the last three and a half years, Cass Sunstein has helped drive a series of historic accomplishments on behalf of the American people. From putting in place lifesaving protections for America’s families, to eliminating tens of millions of hours of paperwork burdens for our nation’s citizens and businesses, Cass has shown that it is possible to support economic growth without sacrificing health, safety, and the environment.

“Cass has shepherded our review of existing rules to get rid of those that cost too much or no longer make sense, an effort that is already on track to save billions of dollars. With these reforms and his tenacious promotion of cost-benefit analysis, his efforts will benefit Americans for years to come. I can’t thank him enough for his friendship and for his years of exceptional service.”

Jeffrey Zients, acting Obama director, will miss tossing a football around with Cass in the halls of the Eisenhower Executive Office Building.